The debt-ridden company behind Chester City FC has today been wound up, the club have confirmed.

Chester City FC 2004 Ltd failed to settle its debts with HM Revenue & Customs resulting in the adjudication at the high court in London this morning.

In January, the company was given six weeks to finalise proposals for a Company Voluntary Arrangement (CVA) aimed at enabling the club, which was formed in 1885, to clear their immediate debts – £26,125 of which is owed to the taxman.

They, however, failed to do that and so today succumbed to a compulsory winding up order.

But supporters have vowed to resurrect Chester, which was expelled from the Blue Square Premier division last month.

Speaking outside the high court, supporting creditor David Evans, who is on the board of City Fans Ltd, said: "It's quite emotional but it means a fresh start. It means we can have our club back. We hope we will now be a reformed club."

Fellow fan Sue Choularton added: "In a way it is very sad, but we are planning on starting up a 'phoenix club' to start again, possibly in Unibond League One. We have already got 1,000 members."

The registrar's ruling means the club's affairs will effectively be handed over to an Official Receiver. His job is then to do his best to ensure that debts are paid off by selling any assets available and then bringing business to a close.

A Football Association spokesperson said: "The FA notes today's decision of the High Court in relation to Chester City. The winding up of any club is a loss to the game and in particular to the supporters of that club.

"In order to maintain a senior football club in the city of Chester, the FA will welcome applications if the club wishes to reform. Any such applications will be considered by the FA's Leagues Committee."

Meanwhile, Cardiff City have been given 56 days and Southend 35 days to settle their own winding-up orders.

Both clubs were given more time by a High Court registrar to make a "full and final" payment to HM Revenue and Customs of VAT and PAYE debts.

Matthew Smith, representing HMRC, told Mrs Registrar Derrett that both clubs were insolvent and Cardiff was "robbing Peter to pay Paul" in order to stay afloat.

He said the Championship side owed around £1.9m and League One Southend £411,000.

Lawyers for Southend agreed staff at the club had not been paid but this would be settled on Monday.

The registrar was told that Southend will receive funds soon, including £800,000 from season ticket sales.

Elaine Palser, representing Cardiff, said a "third party" investor would be providing the club with £6m in funds and the tax debts would be paid.

She said the company was not insolvent and had substantial assets including £30m worth of players and the problems had been caused by a "temporary cash flow difficulties".